Reed Law Firm, P.A. - bankruptcy

Columbia: 803-807-2565

Florence: 843-536-0073

Can I eliminate medical debt in bankruptcy?

With medical costs getting higher and higher, and medical plans paying less and less, many people find themselves with more medical debt than they can pay.

A serious illness or injury can put almost any family is a deep financial hole. Bankruptcy may provide a way to eliminate medical debt and get a fresh financial start.

Am I eligible to file bankruptcy?

There is a bankruptcy option for almost everyone.

Chapter 7 bankruptcy is the simplest way to eliminate medical debt. You are eligible for Chapter 7 bankruptcy if meet both of the following requirements:

  • You have not filed bankruptcy in the past eight years.
  • You meet the Chapter 7 means test.

You will meet the means test if your earnings are lower than the median income for a household of your size in South Carolina. Even if your earnings are higher than the median income, you may be eligible after deducting certain expenses, such as car payments and 401(k) contributions.

If you are not eligible for Chapter 7 bankruptcy, you can still reduce your medical debt by filing Chapter 13 bankruptcy. Under a Chapter 13 payment plan, you may only have to pay back a small percentage of the medical debt you owe.

At the Reed Law Firm, P.A., our lawyers offer a free initial consultation to review your bankruptcy options if you have medical debt problems.

Won't I have to give up all of my assets if I file bankruptcy?

Bankruptcy laws allow you to keep many of the assets you own, such as retirement savings, household items up to a certain value, and up to a certain amount of equity in your home and car. Most people who file bankruptcy don't lose anything.

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Columbia Law Office
220 Stoneridge Drive, Suite 301
Columbia, SC 29210

Phone: 803-807-2565
Columbia Law Office Map

Florence Law Office
1807 West Evans Street, Suite B
Florence, SC 29501

Phone: 843-536-0073
Florence Law Office Map